Innovating For Green Future: Digital Business Models Through the Lens of Dynamic Capabilities

Today's businesses constantly struggle to balance their ethical and ecological responsibilities and financial goals. Businesses must also adjust how they provide goods and services to younger generations via new digital platforms since the digital revolution has drastically changed the way people shop. For them to overcome these obstacles, businesses must make use of their in-house assets and adapt their operations in a way that anticipates and reacts to changes in the outside world. Based on the ideas of flexible abilities, this research presents a structure for business model innovation (BMI) that aims to achieve sustainability while adjusting to the digital era. The study uses a mixed-method approach, with interpretative structural modelling (quantitative) coming after meta-synthesis (qualitative). Approach, aspect, dimension, and component are the four interrelated layers that make up the final model. According to the report, sixteen variables are categorised into four main levels: "resilient information technology," "feasible performance," "environmentally friendly commitment," and "resilient consequences." By presenting environmental and digitisation as important forces behind shifts, this research offers a novel paradigm for modern BMI. The significance of "sustainable engagement," which focusses on resolving ecological and social issues alongside consumer wants, is also emphasised by this system, in addition to developing firms to fulfil sustainability and digital transformation expectations. Studies on BMI is enhanced by this innovative approach. Keywords: Digital transformation, sustainability, innovative business models, and dynamic capacities